At the time of enforcement of the former Income Tax Act (Act No. 3168 of Aug. 14, 1979), the tax authority imposed a taxation based on the standard market price on the ground that the actual transaction price is unclear, and the criteria for calculating the amount of capital gains where the actual transaction price

Article 23 (4) of the former Income Tax Act (Act No. 3168 of Aug. 14, 1979) provides that the transfer value and the acquisition value shall be based on the actual transaction value in calculating the transfer income amount, but the transfer value and the final return of profit from the transfer of assets or the final return of tax base pursuant to the same Act and its Enforcement Decree shall be determined based on the standard market price if the actual transaction value is not known even if the tax authority imposed the transfer income tax based on the standard market price for the reason that the actual transaction value is unclear, even if the tax authority imposed the transfer income tax based on the standard market price in imposing the transfer income tax, it shall calculate the transfer income and calculate the amount

Article 23 (4) of the former Income Tax Act ( August 14, 1979)

Supreme Court Decision 84Nu106 Decided September 25, 1984

[Judgment of the court below]

Head of Western Tax Office

Seoul High Court Decision 83Gu614 delivered on April 17, 1984

The judgment below is reversed, and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

According to the reasoning of the judgment below, the court below acknowledged that the plaintiff purchased the land of this case from the non-party 1 on June 17, 1978 at KRW 6,579,00, and did not make a final return on the profits accruing from the transfer or the final return on the return on the transfer of income under the Income Tax Act even though he sold the land to the non-party 2 on September 1, 1979, the court below determined that the transfer price and the acquisition price in calculating the transfer income amount for the imposition of the transfer income tax should be based on the actual transaction price, or that the actual transaction price should be determined according to the standard market price, and that the transfer price should be determined by the non-party 1, 1979 at KRW 7,650,00,00, which is 60,000,000, which is 60,000,000 won or more based on the above standard market price, and that the actual transaction price should be determined as 60,000,06,000.

However, Article 23 (4) of the Income Tax Act at the time of this case provides that the transfer value and the acquisition value shall be based on the actual transaction value in calculating the transfer income amount, but the transfer value and the actual transaction value shall be determined based on the standard market price if the actual transaction value is not known or even if the actual transaction value is unclear by the report, in imposing the transfer income tax, even if the tax authority imposed the transfer income tax on the basis of the standard market price for the reason that the actual transaction value is unclear, if the actual transaction value is determined by the standard market price, the transfer income tax shall be calculated and the tax amount shall be determined based on the actual transaction value in a revocation lawsuit (see Supreme Court Decision 84Nu106 delivered on September 25,

The court below held that the transfer margin is calculated based on the standard market price even after the plaintiff acquired and transferred the land, and the transfer margin is calculated based on the standard market price, and the transfer income tax is calculated as KRW 7,650,000, and that the transfer margin is legitimate among the tax dispositions, the court below erred by misapprehending the legal principles on the calculation of transfer margin under the Income Tax Act and failing to exhaust all necessary deliberations. Thus, there is a good reason to point this out.

Therefore, the judgment of the court below is reversed, and the case is remanded to Seoul High Court. It is so decided as per Disposition by the assent of all participating Justices.

Justices Gangseo-young (Presiding Justice)